SEC May Question Rajaratnam Brothers In Gupta Case

Nov 9 2011 | 12:37pm ET

The Securities and Exchange Commission may depose Raj Rajaratnam's brothers—as well as the convicted insider-trader himself—as it builds an insider-trading case against former McKinsey & Co. head Rajat Gupta.

The regulator brought its own charges against Gupta—for the second time—simultaneously with federal prosecutors, who have laid criminal charges against Gupta for passing confidential information on to Rajaratnam. In addition to Gupta himself and Rajaratnam, who was sentenced to 11 years in prison after a trial which featured Gupta's voice on wiretaps, the SEC may want to question "one or both" of Rengan and Ragakanthan Rajaratnam, both of whom worked at Galleon. Rengan was named as an unindicted co-conspirator in his brother's criminal trial, and he too was heard on the wiretaps at the center of that case.

Gupta is accused of tipping Rajaratnam about Goldman Sachs and Proctor & Gamble, on whose boards he served. He has denied any wrongdoing.

In addition to Gupta and the Rajaratnams, the SEC said it hoped to depose people they worked with, as well as people who served on the Goldman and P&G boards with Gupta.

Kevin McGrath, a lawyer for the SEC, asked that the depositions be postponed until after Gupta's criminal trial, set to begin in April, as they could become "moot" based on the conduct and outcome of that trial. Gupta's lawyer, Gary Naftalis, objected, noting that the SEC made the "tactical" decision to sue Gupta now.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.